What is Blockchain

21 Sep, 2021 09:55 pm

What is blockchain?

As the word itself show that blockchain is the blocks of transaction which are connected by the chain, more specifically it can be defined as 

a system of recording information in a way that makes it difficult or impossible to change  hack, or cheat the system. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant's ledger.

 

Types of Blockchain

There are the three types of blockchain;

1-   Public  Blockchain

A public blockchain is a blockchain that is open to the public and that anyone can join without specific permission. All people who join the network can read, write, and participate in this network that is not controlled by anyone.BTC is  a public blockchain thats why transaction are slow in BTC

 

2-   Consortium Block chain 

In this blockchain everyone doesn't have access. Only a few assigned groups can access the block chain. Transaction are fast in this blockchain and the creator of this blockchain decides who can access this blockchain. A consortium blockchain is ideal for business when all participants need to be permissioned and have a shared responsibility for the blockchain.

 

3-   Private Block Chain

Private Blockchain is invitation-only and anyone who wishes to access it must ask for permission from the governing body of the blockchain. They allow different levels of access that determine which users can write, read and audit the blockchain. Transaction are fast as compared to consortium and public block chain

 

Block chain technology works in two ways;

1.    Decentralisation

Data is not saved in one place, it is stored in millions of computers so it is difficult to change data on every computer so it is safe. No one can change an entry once it has been validated and the users can be sure that their transactions are not modified or deleted. Decentralization  works on principle of consensus

 

2.     Proof of work is used widely in cryptocurrency mining, for validating transactions. In Blockchain  this algorithm is used to confirm transactions and produce new blocks to the chain. With Proof of work, miners compete against each other to complete transactions on the network and get rewarded.

 

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